Debated in Parliament on 4 Oct 2023.
Mr Zhulkarnain Abdul Rahim asked the Minister for Manpower given the finding of the recent study by NTU and Lee Kuan Yew School of Public Policy that only 65% of active CPF members who turned 55 in 2021 have either saved enough for the CPF Basic Retirement Sum and owned a property, or had saved the Full Retirement Sum, what steps will the Ministry take, together with employers, to increase the awareness of adequate retirement planning amongst employees, especially older workers.
To help Singaporeans attain basic retirement adequacy, we, first and foremost, need to ensure that our economy continues to be competitive and create good jobs. We uplift lower-wage workers through Workfare and Progressive Wage moves. Singaporeans can be assured that they will be able to meet their basic retirement needs as long as they work and contribute consistently to the Central Provident Fund (CPF). About seven in 10 active CPF members who turned age 55 in 2022 set aside the CPF Basic Retirement Sum or more. This would improve to about eight in 10 for CPF members who turn age 55 in 2027.
As our life expectancy improves, more seniors are able and wish to continue working. We will support them by increasing the statutory retirement and re-employment ages to 65 and 70 respectively by 2030, up from 63 and 68 today. This will enable our seniors to work longer if they wish to and further strengthen their retirement adequacy.
Retirement planning is, ultimately, a personal responsibility. To help Singaporeans in this journey, CPF Board, MoneySENSE1 as well as MoneySENSE’s ground outreach arm, the Institute of Financial Literacy (IFL), conduct outreach and provide resources on retirement planning.
For example, CPF members reaching the age of 55 will be invited to a one-to-one CPF Retirement Planning Service, which offers personalised guidance, so that they can make informed decisions on how best to prepare for retirement with their CPF savings. CPF Board also regularly engages and educates members on retirement planning through its social media platforms, electronic direct mailers and face-to-face community events/talks. There is also an annual CPF Board Retirement Planning Campaign to inspire Singaporeans to start planning for their retirement.
IFL provides free one-to-one financial health clinics and retirement planning workshops covering topics, such as money management, managing CPF savings and estate planning. To reach employees, IFL has been partnering employers to deliver workplace financial literacy programmes.
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